Argentine shares sank as much as 7.4% on Wall Street but bonds climbed as much as 5.4%

The shares of Argentine companies fell sharply this Tuesday, May 16, on Wall Street, in a day marked by a downward trend in the main indices of the New York Stock Exchange, while the local market that is still digesting a series of measures of the Economy, among which the rise in the rate stands out at 97% per year and the decision of a greater intervention in the exchange market, which seek to contain high inflation.

The ADRs of Argentine companies on the New York Stock Exchange closed majorities of losses, led by the financial sector. The one that fell the most was Grupo Financiero Galicia with 7.4% but Banco Macro (-6.4%) and Banco Supervielle (-6.1%) also fell sharply. In turn, the three main indices of that market closed lower: Dow Jones (-1%), S&P 500 (-0.4%), and Nasdaq (-0.2%).

For its part, the S&P Merval stock index of BYMA it lost 0.6% to 318,791.97 points, after scoring its intraday record in the first part of the session at 324,614.98 points. In the leading panel, the main casualties were for BBVA bank (-4.2%), Macro bank (-3.6%) and Supervielle bank (-3.6%). The rises, for their part, were led by Transportadora de Gas del Norte (+3.8%) and Ternium (-3.2%).

Learn more – Follow the price of the blue, official, CCL and MEP dollar in Argentina

“I think that the external context remains cautious, and this does not help since it is combined with the climate of local political and economic uncertaintyin the midst of financial – and free – dollars that are rearranging upwards after the latest economic measures,” said Gustavo Ber of Estudio Ber.

And he added: “Hence, domestic assets were conditioned, and Within ADRs, banks and energy companies were among the most pressured roles, since they are usually the vehicles used by operators to tactically rebalance – due to its greater liquidity – the bets”.

The Government announced on Sunday a package of measures that seek to contain the escalation of retail prices and support the price of the dollar, with an annual rate of 97%more interventions in the exchange market and agreements with creditors, basically new goals with the International Monetary Fund (IMF).

This conference also revealed that the basic food basket jumped 7.3% in April while a family needed $203,361 to avoid being poor. Both measurements were below last month’s inflation, which was 8.4%, the highest monthly level since 2002 (when it climbed to 10.4% in April of that year, after the exit from Convertibility).

Bonds and country risk

In the fixed income segment, for its part, sovereign bonds in dollars rose to 5.4% thanks to the Global 2041, followed by the Global 2038 (+3%), and the Bonar 2030 (+1.9%). For its part, country risk improved 0.3% to 2,574 basis points.

Meanwhile, dollar-linked sovereigns closed with average increases of 0.7%. The dual for his part rose 0.3% average in the short tranche and 1.8% average in the long tranche. Regarding the segment CERwhile Las Leceres and the short stretch of Bonceres rose 0.3%, the long stretch gained 0.5%.

Finally, The Ministry of Economy will seek to raise VNO $400,000 million tomorrow through the bidding of one Lelite to June, two Lecer (X18S3 and X18O3), the Boncer T2X3, the Dollar Linked D31O3 letter, a new Dolar Linked bond to September 2024 and a new Boncer to August 2025.